Overview of Service

Marketing

By: Julie Ann M. Gallego, DBA

 Policies and Expectations
 Class participation is required.
 Attendance is a must.
 All students are expected to complete their own work.
 Students must read the powerpoint before class and be
prepared for discussion.
 Work is expected to be handed in on time. There will be
deduction for each day late submission.
 Learning Objectives

At the end of the lesson, you should be able to:

1.Define what is a service and service marketing

2.Identify the categories of services
3.Differentiate between products and services
 Services Defined
 Services are deeds, processes, and performances
provided, coproduced, or cocreated by one entity or
person for and/or with another entity or person.
 It is all economic activities whose output is not a physical
product or construction, is generally consumed at the time
it is produced, and provides added value in forms (such
as convenience, amusement, timeliness, comfort, or
health) that are essentially intangible concerns of its first
purchaser.
 Services are form of product that consists of activities,
benefits, or satisfaction offered for sale that are
essentially intangible and do not result in the ownership of
anything.
 Services are activities, benefits or satisfactions which are
offered for sale or are provided in connection with the sale
of goods.
 Services may be defined as intangible activities
performed by persons or machines or both for the
purpose of creating value perceptions among consumers.
 What is Service Marketing?
 Services marketing is a specialised branch of marketing
and emerged as a separate field of study in the early
1980s.

 It has been recognized that services have unique

characteristics compared to products, thus, service
required different marketing and strategies compared with
the marketing of physical goods.
 Service marketing refers to the application of a different set
of tactics or strategies to anticipate the consumer’s need for
an intangible product.
 The goal of marketing services is to create good
relationships with your target audience, developing and
building trust.
 Service marketing is the marketing and selling of intangible
products (non-physical products). Services comprise all of
those personal facilities which we require from time to time
like; medical care, education, renting of living spaces and
vehicles, hair cut, spas, musical concerts, dance classes,
etc.
 Different Categories of Services

a. Service industries and companies include those

industries and companies typically classified within the
service sector where the core product is a service.
 All of the following companies can be considered pure
service companies: Marriott International (lodging),
American Airlines (transportation), Charles Schwab
(financial services), and Mayo Clinic (health care). The
total services sector comprises a wide range.
b.Service as a product is a transaction of service
production and delivery model in which a productized
service is sold by the seller or vendor to the buyer and is
centrally hosted, either on a standalone website or an open
marketplace platform.
 It is sometimes referred to as "on-demand service". SaaP
is typically accessed by the creator and the consumer
by users using a thin client via a web browser.
d.Derived service is yet another way to look at what service
means. All products and physical goods are valued for the
services they provide.
 The value derived from physical goods is really the
service provided by the good, not the good itself.
 For example, they suggest that a pharmaceutical drug
provides medical service, a razor provides barbering
service, and computers provide information and data
manipulation service. Although this view is somewhat
abstract, it suggests an even broader, more inclusive,
view of the meaning of service.
c.Customer service is also a critical aspect of what we mean by
“service.” Customer service is the service provided in support of a
company’s core products. Companies typically do not charge for
customer service.
 Customer service can occur on-site (as when a retail employee
helps a customer find a desired item or answers a question), or it
can occur over the phone or via the Internet through chat in real
time. Many companies operate customer service call centers, often
staffed around the clock.
 In other cases, customer service is provided remotely, through
machine-to-machine communication without any human interaction.
Regardless of the method, quality customer service is essential to
building customer relationships.
 Service Characteristics

Intangibility
 The most basic distinguishing characteristic of services
is intangibility. Because services are performances or
actions rather than objects, they cannot be seen, felt,
tasted, or touched in the same manner that you can
sense tangible goods.
 For example, health care services are actions (such as
surgery, diagnosis, examination) performed by providers
and directed toward patients and their families.
Heterogeneity
 Heterogeneity also results because no two customers are
precisely alike; each will have unique demands or
experience the service in a unique way.
 For example, a tax accountant may provide a different
service experience to two different customers on the same
day depending on their individual needs and personalities
and on whether the accountant is interviewing them when
he or she is fresh in the morning or tired at the end of a
long day of meetings.
Inseparability
 Unlike any physical product that you receive it from the
seller, then consume it later. Services work completely
differently. The customer receives the service and
consumes it at the same time. You cannot separate its
receiving and consumption.
 For instance, a barber is providing the service of hair
cut and the customer is consuming it at the same time.
Online doctors and lawyers provide legal and medicinal
services to their clients.
Perishability
 Refers to the fact that services cannot be saved,
stored, resold, or returned.

 For instance, you have booked an airplane seat for

today; you cannot use the same seat for tomorrow or
any other day. If you miss the opportunity of using it,
then it will perish.
Difference between Products and Services
 Products vs. Services
Products Services
Magazines Housekeeping
Toothpaste Business consulting
Food Maintenance service
Candy Graphic design
Laundry detergent Financial advising
Shampoo Academic tutoring
Lotion Auto mechanic shop
Moisturizer Transportation services
Coffee Carwashes
Major Industries Classified under the Services Sector
 Transportation and public  Finance, insurance and real
utilities estate
 Communication  Hospitality services
 Electric, gas and sanitary  Personal services
services  Business services
 Wholesale and retail trade  Accounting services
 Entertainment services  Educational services
 Healthcare services  Social organizations offering
 Legal services services
 Government services-civilian-  State and local government
cum-military services
 Tourism services
Group Discussion

Instruction: Select your group members and form five

groups.
Do the following below:
 Think of a service to offer and make a short
description about the service.
 Create your own tagline.
Thank you!